From Meat to Grain: EAEU and Mongolia Agree on Mutual Preferences

The Eurasian Economic Union (EAEU) and Mongolia have taken a decisive step towards each other by concluding a temporary trade agreement that promises to significantly strengthen economic ties and, above all, agricultural trade between the member countries. The agreement, designed for a three-year term with the possibility of extension, aims to eliminate or substantially reduce customs duties on hundreds of commodity items, opening new horizons for exporters on both sides. 

According to the Eurasian Economic Commission (EEC), the agreements reached cover 367 commodity subheadings for each party. This move, according to expert assessments, carries significant economic potential.
Andrey Slepnev, the EEC Minister for Trade, noted that the tariff preferences will cover more than 90% of export supplies from the EAEU countries to Mongolia, which amounts to about $2 billion in monetary terms. According to him, this will allow companies from the Union countries to save up to $100 million annually on duties.

What Does This Mean for EAEU Farmers?
For the agricultural sector of the Eurasian Union countries, the agreement opens preferential access to the Mongolian market for a whole range of key goods. In particular, farmers will be able to supply the following on more favorable terms:
• Grains: wheat and corn
• Dairy products
• Vegetable oils
• Finished meat and poultry products
• Sugar and confectionery
• Cheeses
• Mineral water and alcoholic beverages
In addition, the preferential terms will also apply to some industrial goods, creating a comprehensive positive effect for the economies of the EAEU member countries.

Reciprocal Preferences and Potential for Cooperation
The agreement is reciprocal in nature. In turn, Mongolia will gain simplified access to the EAEU market for its traditional export goods. This primarily includes livestock products such as horse meat, beef, lamb, canned meat, and by-products. Mongolian producers will also be able to supply dairy products, including yogurts and cheese, and light industry goods, including wool, threads, and high-quality knitted and textile clothing, on preferential terms.

It is important to note that the agreement is not limited to tariff regulation alone. The document lays the foundation for deepening cooperation in non-tariff areas as well. The parties have agreed to cooperate in the fields of technical regulation, and the application of sanitary, veterinary, and phytosanitary measures. There are also plans to develop cooperation in customs, e-commerce, and other areas of economic interaction, which together should eliminate many barriers to trade.

Commenting on the prospects, Andrey Slepnev expressed hope that the launch of the agreement will not only preserve but also strengthen the positive dynamics in mutual trade, which has already grown by more than one and a half times in recent years. The EEC expects that the implementation of the agreements reached will increase the total trade turnover between the EAEU and Mongolia to $3 billion. This agreement sets an important precedent, demonstrating the EAEU's readiness to build mutually beneficial and long-term partnerships in the region.